People Are Going Broke On Vacation! 15 Ways To Avoid Overspending
CindyVacations have a way of getting people to throw caution to the wind, but that should never apply to their wallets. Without proper preparation, many travelers will take a financial hit after vacation; here are fifteen ways to avoid it.
1. Create a Vacation Savings Fund
No one goes on vacation on the spur of the moment; it's typically a thought-out plan made over an extended period. In addition to your regular savings account, consider setting up a vacation savings fund. Every month, set aside some money for your future travels. This will ensure you can enjoy your vacation without blowing your savings.
2. Set a Budget
When planning for a vacation, people often factor in the cost of their hotel and flight but don't plan their spending. It's important to properly plan out how much money you're willing to spend on your trip in advance. How much will you spend on meals, transportation, shopping, and activities? All these come at a cost that should be factored into the budget.
3. Have a Safety Net
It's impossible to plan out every dollar you'll spend on vacation. Avoiding overspending doesn't mean sacrificing fun or spontaneity, so budget in a financial safety net. You should provide yourself with extra cash for discretionary spending that's only used when no alternative exists.
4. Use Travel Rewards Cards
When choosing a credit card provider, choose one that offers travel rewards. You can earn points for using the card that will help cut back on the cost of your trip. You could earn points for hotels, flights, and other travel expenses depending on your average spending habits.
5. Plan Ahead
Itineraries typically get a bad reputation on vacations, but they're helpful when trying to stick to a set budget. While every second of your trip doesn't need to be carefully planned out, having a loose itinerary will serve as a guide to help you make the most of your trip without blowing all of your money on things with a higher price tag.
6. Find Free Activities
An activity doesn't need to be expensive to be memorable. Every country has free sites, activities, and parks to see and explore. Instead of going to places where you have to paid a lot of money, you can explore and enjoy the country's free experiences by doing your research.
7. Limit Spending
For many people, whether or not they have a budget, it's easy to lose track and overspend while on vacation. To combat this, you should try your best to limit your spending. Take a look at the budget you've prepared to determine how much money you can spend daily and stick within that range.
8. Avoid Hidden Fees
Traveling and tourism is a multi-trillion-dollar industry, so it's no surprise there are hidden fees throughout the traveling experience. There may be cleaning fees, fees to check your luggage, etc. Always read the fine print and know exactly how much things cost before taking advantage of any services.
9. Use Public Transportation
Many travelers think they must rent a vehicle instead of using public transportation. However, public transportation is considerably cheaper than taxis and rental vehicles, so if you're trying to save money while traveling, consider taking the bus instead of an Uber.
10. Ignore Peer Pressure
If you're traveling with friends or family, they could contribute to your overspending. If your travel buddies encourage you to spend more than you intended or pressure you to participate in an activity you can't afford, ignore the pressure and stick to your budget; your wallet will thank you.
11. Use Cash
Local currency exchange rates could fluctuate depending on where you're traveling. To avoid losing money through currency exchange, head to a local bank or ATM to withdraw cash in the currency of the country you're visiting. Cash can also help you avoid overspending if you only carry the amount you plan to use that day. Using a credit card makes spending more than you initially planned easier since you can't physically see the money being spent.
12. Pause Subscriptions
Do you have a gym membership, food delivery service, or streaming service you won't need while away? Most people don’t think of how much they could save by skipping these services while they aren’t using them. If you're going on an extended vacation, pause your subscriptions to avoid any unnecessary expenses while you aren't home.
13. Limit Restaurant Meals
No one wants to think about cooking while on vacation, but constantly dining out can seriously drain your wallet. Instead of going out to eat every day, take a trip to the grocery store to buy a few essential items. Swapping dining out with simple foods and snacks that won't take long to prepare is the best way to avoid overspending on food during your vacation.
14. Cut Back on Alcohol
You don't need alcohol to have a good time, but for some reason, when people are on vacation, they tend to drink a lot more than they usually would on a night out. While drinking on vacation could be fun, is it worth blowing your entire vacation budget on? If you want to make the most of your vacation, drink in moderation.
15. Focus on Experiences
What's more important, returning from vacation having spent all your money shopping for material things or returning with memories that will last a lifetime? Going on vacation should be about experiencing a new place, meeting new people, and making memories. Paying an entrance fee and spending a few hours exploring a park or museum is a much better way to spend your time than buying clothes or souvenirs.
She started her blog, The Money Dreamer, when she realized the 9-5 job was not the lifestyle she wanted anymore. After designing for a while, she wanted a more meaningful life, which was freedom, so she decided to venture out. She took action so that she can live her dream life and decided to help people to live theirs by helping them how to save, budget, and invest.
